You can duplicate this asset allocation in other investment vehicles (IRA, 401(k)) by choosing the same components in the same proportions.

I don't understand what you're saying here. You can invest in target funds in any IRA (assuming you're with the right company, and even that could be "fixed") and in many 401Ks (not all though, unfortunately).

Maybe I misunderstood your point but I wanted to point that out to the OP at least.

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I don't understand what you're saying here. You can invest in target funds in any IRA (assuming you're with the right company, and even that could be "fixed") and in many 401Ks (not all though, unfortunately).

Maybe I misunderstood your point but I wanted to point that out to the OP at least.

Sorry this was unclear. What I meant is that if one has an account that does not offer a target retirement fund, such as a 401(k), one can still assemble the elements of that target fund by choosing the pieces as they are available in other investment vehicles.

For instance one could pick up the large cap portion in a company 401(k) that offers a S&P 500 index fund, then round out the target fund basket with an IRA or taxable account that offers small- mid cap / foreign / bonds, REITs, etc.

So in the end you could own a target fund where it is offered and still have the rest of your investments mirror that target fund allocation. Granted, one would have to make periodic adjustments to investments outside the target fund to keep the asset allocation proportioned, but all the heavy lifting is done by the target fund managers - all the OP needs to do is copy it yearly.

Sorry this was unclear. What I meant is that if one has an account that does not offer a target retirement fund, such as a 401(k), one can still assemble the elements of that target fund by choosing the pieces as they are available in other investment vehicles.

For instance one could pick up the large cap portion in a company 401(k) that offers a S&P 500 index fund, then round out the target fund basket with an IRA or taxable account that offers small- mid cap / foreign / bonds, REITs, etc.

So in the end you could own a target fund where it is offered and still have the rest of your investments mirror that target fund allocation. Granted, one would have to make periodic adjustments to investments outside the target fund to keep the asset allocation proportioned, but all the heavy lifting is done by the target fund managers - all the OP needs to do is copy it yearly.

Yeah, I get that. Good point.

I just didn't want the impression left that you couldn't get into these inside a 401K/IRA.

I just didn't want the impression left that you couldn't get into these inside a 401K/IRA.

Point well taken. On the Bogleheads Forum there is a steady stream of folks with 401(k) plans whose contributions are matched by their employers, but the investment choices are poor and/or high expense. I was thinking of the obvious answer - to cherry pick the best of the mandated choices and build the rest of the portfolio around that.

If the OP can directly invest in a target retirement fund, he is all set.

2% is VERY HIGH for an independent company. Schwab is a good cheap place to sell stocks and buy them..........

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